An enterprise with all the authority to perform as an insurance company but organized by a parent company for the express purpose of providing the parent company’s insurance.
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Captives : Captives refer to specialized insurer or reinsurer created with the sole aim of providing cover to the promoters or affiliates. Most fortune 500 companies make use of captives, to some extent or more. Favorable tax treatment and benign regulatory regime have spurred the growth of captives in some of the regions in the world, for example, Caribbean and Europe. Captives may be acting as direct underwriter or a frontal operating as a reinsurer. Captives provide high degree of control to the promoters. In view of high administrative costs, innovations in the form of cell captives, rent a captive etc. allow cost sharing by several clients. Under these arrangements, assets of client are protected through legal separation of assets and liabilities of each underwriting account and that of the captive as a whole. The regulatory regime, especially in relation to admitted and non-admitted reinsures lead to complications in the arrangement with captives, such as collateral requirements. It may also necessitate maintaining arm’s length relationship with the captives in some regions. Association Captive : Captive Insurer having two or more parents, with the parents typically being members of an industry/trade/association. Pure Captive : Captive having only one parent and insuring the los exposures of that one parent.Capture and Seizure : In marine insurance capture includes every act of seizing or taking by an enemy or belligerent. Seizures goes beyond this to embrace every act of forcible possession either by a lawful authority or by overpowering force.
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In its pure form, an Insurer owned by a parent corporation which is also its only customer. One way of funding a retention program.Insurer Association or Group Captive : A captive Insurer owned by an association or group that insures only members of the association or group.Insurer, Direct Writer : An Insurer that markets its services through its own employees.Insurers, Group of : Two or more Insurers operating as a team under common ownership or management.Insurer, Independent : An Insurer that sets its own prices. An independent Insurer does not use the rates developed by a rating bureau.Insurer, Independent Agency : An Insurer that markets its services through independent Agents who may represent many Insurers.Insurer, Mutual : A cooperative Insurer owned by its Policyholders.Insurer, Participating : An Insurer whose Policyholders participate in the experience of the Insurer through dividends, assessments, or both.Insurer, Stock : A proprietary Insurer owned by stockholders who elect a board of Directors.I.S.O .: International Standard Organization also referred to as the International Organizational for Standardization.
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US: Insurance companies established and owned by a parent firm in order to insure its loss exposures while reducing premium costs, providing easier access to a re-insurer, and perhaps easing tax burdens. Cargo Insurance: Type of ocean marine insurance that protects the shipper of the goods against financial loss if the goods are damaged or lost.
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MEDICAL,USA,REFERENCE: See: captive insurance company.